Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
1031 exchanges and the tax man
Old 10-24-2006, 09:54 PM   #1
Recycles dryer sheets
 
Join Date: Oct 2003
Posts: 175
1031 exchanges and the tax man

I always wonder how the IRS keeps track of a 1031 exchange that happened e.g. 10-20 years ago. These type of exchanges are often single events that may only happen every couple of years. Unlike business expenses these are not items that carry over from year to year until used up and are easy to follow. As a taxpayer, it is hard for me to remember the 1031 transaction and in what year. How does the IRS remember or keep track of the old stuff? Any IRS experts here?

Vicky
__________________

__________________
vic is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: 1031 exchanges and the tax man
Old 10-24-2006, 10:14 PM   #2
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
Re: 1031 exchanges and the tax man

Why would the IRS need to keep track of your 1031 exchange?

The burden is on you.
__________________

__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
retire@40 is offline   Reply With Quote
Re: 1031 exchanges and the tax man
Old 10-24-2006, 11:06 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Re: 1031 exchanges and the tax man

All I can say is when the IRS failed that famous outside party audit (Price Waterhouse), their records were SO BAD Price found out that there was $65 billion in taxes they were OWED that they could not collect.........
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Re: 1031 exchanges and the tax man
Old 10-25-2006, 08:18 AM   #4
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,449
Re: 1031 exchanges and the tax man

Quote:
how the IRS keeps track of a 1031 exchange that happened e.g. 10-20 years ago
They won't ... the exchange is only relevant the year it took place. Taxes are expected to be paid on the deffered $$ when the property is ultimately sold, sooo they'll just assume the entire sale is taxable - as usual - the burden of proof is on us.

As a side note, my accountant explained that IRS reviews are always 2 years behind. After that they'll only go back further if a pattern of fraud has been found.
__________________
FIRE'd since 2005
tryan is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 07:43 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.